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Host Hotels & Resorts, Inc. reports first quarter 2021 results

Returns to profitability at the hotel level; Acquires Four Seasons Resort Orlando at Walt Disney World® ResortBETHESDA, Md., May 4, 2021 (GLOBE NEWSWIRE) – Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the largest real hotel in the country real estate investment fund (“REIT”), today announced the results for the first quarter of 2021. Operating results (unaudited, in millions, except for shares and hotel statistics) Quarter ended March 31, percentage change of percentage change 2021 2020 vs. T1 2020 vs. 2019 (2) Revenue $ 399 $ 1,052 (62.1)% (71.3)% All hotel revenue (pro forma) (1) 401 1,053 (61.9)% (69.5)% All hotels own (pro forma) RevPAR Total – Constant US $ 94.98 247.53 (61.6)% (69.6)% Totally owned hotel (pro forma) RevPAR – Constant US $ 61.43 147.56 (58 , 4)% (68.1)% Quarter ended March 31, percentage 2021 2020 Change Net loss $ (153) $ (3) (5000.0)% EBITDAre (1) 5 164 (97.0)% EBITDA Adjuster (1) 3 164 (98.2)% Diluted loss per common share (0.22) – N / M NAREIT FFO per diluted share (1) 0.01 0.23 (95.7)% Adjusted FFO per share diluted (1) 0.01 0.23 (95.7)% * Additional details on the Company’s results, including data for 21 domestic markets, are available in the Supplementary Financial Information for the First Quarter of 2021 available on the Company’s website at www .hosthotels.com. James F. Risoleo, president and CEO, said: “We exceeded our expectations significantly in the first quarter and returned to hotel-level profitability for the first time since the pandemic began. As a result, for the quarter, although we recorded a GAAP net loss, we delivered positive Adjusted EBITDA. As vaccine deployment accelerated and blockages eased across the country, our portfolio continued to gain revenue momentum until February and suffered a sharp rise in March, with spring break trips driving the high demand for leisure to our luxury resorts in Sunbelt and other important leisure destinations. Risoleo continued, “With the hosting recovery underway, we are pleased to have completed the acquisitions of Hyatt Regency Austin and Four Seasons Resort Orlando at Walt Disney World® Resort for a total of $ 771 million. These high quality properties, located in attractive growth markets with strong demand drivers, are expected to benefit from robust recovery trajectories and are already performing better than we anticipated. In addition to making significant acquisitions this year, we continue to work on redefining our hotel operating model with our managers and positioning our properties to gain market share, essential strategic objectives that we believe will accelerate our recovery and strengthen our ability to deliver long-term results. growth for our shareholders. Overall, we are pleased to close the first quarter after the most challenging year in the history of accommodation, feeling optimistic about the recovery in travel and excited about our relative strength at the beginning of the new hosting cycle. Highlights: 2021 First Quarter Results Recorded a GAAP net loss of $ 153 million in the first quarter of 2021, compared to a net loss of $ 66 million in the fourth quarter of 2020, which benefited from a gain of $ 195 million in the sale of assets. All Owned Hotel Pro forma EBITDA of $ 21 million in the first quarter of 2021, due to a sequential improvement in RevPAR and operations. This included the breakeven point or positive operating profit of hotel level in 30 hotels of the Company, representing 30% of the rooms, an increase of 20 hotels, representing 24% of the rooms, reached in the fourth quarter of 2020. Acquired the fee-simple participation at the 448-room Hyatt Regency Austin for $ 161 million. It ended the quarter with total available liquidity of approximately US $ 2.1 billion, including US $ 131 million FF&E escrow reserves. Subsequent events Purchased the 444-room Four Seasons Resort Orlando simple interest rate at Walt Disney World® Resort for approximately $ 610 million in cash. Located within the Walt Disney World® Resort, one of the most visited destination resorts in the world, the resort offers 55,000 square feet of meeting space, six food and beverage outlets, five pools, three tennis courts, a 13,000 foot spa square, an 18 hole golf course and clubhouse and a five acre family water park. Acquired the Royal Ka’anapali and Ka’anapali Kai golf courses for $ 28 million. Featuring two 18-hole golf courses over 296 acres, these assets are expected to generate synergies with the adjacent Hyatt Regency Maui Resort & Spa and provide opportunities for future value increases. Completed development of additional villas on Andaz Maui at Wailea Resort. The 19 luxury two-bedroom villas are already booked at 45% occupancy with an average rate of $ 1,700 for the remainder of 2021. April’s RevPAR is expected to slightly exceed March’s RevPAR. Operating activities Cash and cash consumption The significant components of the Company’s total cash consumption are (in millions): Quarter ended March 31, 2021 Quarter ended December 31, 2020 Net loss $ (153) $ (66) Cash net GAAP used in operating activities (49) (143) Cash consumption excluding capital expenditures (45) (149) Cash consumption (3) (138) (264) Cash consumption components: All Owned Hotel Pro Forma EBITDA ( 3) 21 (62) Adjustment benefits for licensed employees (12) (13) Interest payments (4) (35) (50) Corporate cash and other expenses (19) (12) Net income from (payments to) non-performing operations consolidated (2) 9 Reversal of layoffs (expenses) in hotel properties 2 (21) Cash consumption, excluding capital expenditures (45) (149) Capital expenditures (93) (115) Operating results Due to low occupancy levels and / or state mandates, operations remain suspended at three portf hotels Company ‘s canary on May 4, 2021. The Company has provided a complete list of these suspended hotels on page 30 of its 2021 First Quarter Supplement l Financial information available on the Company’ s website at www.hosthotels.com. Below we present the monthly pro forma operating results of hotels for the complete portfolio compared to 2020 and 2019 for the periods presented (5): January2021 January2020 Change February 2021 February 2020 Change March2021 March2020 Change Number of hotels 81 80 81 80 81 80 Number of rooms 46,755 46,590 46,755 46,590 46,755 46,590 Average percentage of occupation 19.6% 71.5% (51.9 points) 26.0% 77.2% (51.2 points) 34.1% 29.3% 4, 8ptsAverage Room Rate $ 212.60 $ 244.43 (13.0)% $ 223.28 $ 254.08 (12.1)% $ 246.32 $ 255.05 (3.4.05)% RevPAR $ 41.68 $ 174.85 (76.2)% $ 58.15 $ 196.19 (70.4)% $ 84.10 $ 74.77 12.5% ​​January2021 January2019 Change February 2021 February 2019 Change March2021 March2019 Change Number of hotels 81 80 81 80 81 80 Number of rooms 46,755 46,590 46,755 46,590 46,590 46,590 Average occupancy rate 19.6% 69.5% (49.9 points) 26.0% 77.0% (51.0 points) 34.1% 81.4% (47.3 points) Average room rate $ 212.60 $ 242.57 (12.4)% $ 223.28 $ 253.11 (11.8)% $ 246.32 $ 263.48 (6.5)% RevPAR $ 41.68 $ 168.56 (75.3)% $ 58.15 $ 194.82 (70.2)% $ 84.10 $ 214.36 (60.8)% First quarter of 2021 Revenue performance of all owned Pro Forma RevPAR hotels decreased 68.1% compared to the first quarter of 2019 and improved 61% compared to the fourth quarter of 2020. The sequential improvement was mainly due to strong leisure demand for resorts and hotels located in the company’s Sunbelt markets and Hawaii. Average room rates decreased by just 9% compared to the first quarter of 2019 and improved by 18% compared to the fourth quarter of 2020. Average occupancy decreased by 49.3 percentage points compared to the first quarter of 2019 and improved by seven percentage points compared to the fourth quarter of 2020. Performance of hotel operating expenses First quarter of 2021 Operating costs for the entire portfolio, excluding indemnities, were almost 60% lower compared to the first quarter of 2019, and only 15% compared to the fourth quarter of 2020, despite an increase of approximately 50% in total revenue quarter after quarter. Due to stronger than expected demand growth in March, the increase in the number of employees in several properties was unable to keep pace. The company expects the hotel’s operating costs to increase more in line with total revenues as hotels move from their contingency-level operating plans to increase levels of manageable and controllable expenses. Hired employees received health benefits of approximately $ 12 million that were accumulated in the fourth quarter of 2020. In addition, the Company’s hotel operators registered a $ 7 million credit related to the Employee Retention Credit in the first quarter, which, from under the CARES Act, it partially offset costs for the operator’s licensed hotel employees and reduced operating expenses at the hotel level. Operating expense trends Employee benefit costs released during the second and third quarter of 2021 are unlikely to have a significant impact on results as they will be eligible to be reimbursed through the American Rescue Plan Act. maintenance and other support costs are expected to increase other departmental and support expenses as recovery continues to gain momentum. Update of the hotel’s business mix The company’s customers fall into three major groups: transitional, group and contract businesses, which accounted for approximately 61%, 35% and 4%, respectively, of their room sales in 2019. During the first quarter, demand continued to be driven mainly by leisure demand in car and resort destinations. The following are the sequential results of the company’s consolidated portfolio, including all owned hotels as of March 31, 2021, for transitional, group and contract businesses compared to 2019 performance: Quarter ended March 31, 2021 Quarter ended December 31, 2020 Transient Group Contract Transient Group Hire room nights (in thousands) 767 264 89 595 157 87 Percentage change in room nights vs same period in 2019 (56.4)% (79.2)% ( 43.0)% (70.0)% (86.1)% (44.7)% Room revenue (in millions) $ 205 $ 41 $ 13 $ 128 $ 24 $ 12 Percentage change in revenue vs. same period in 2019 (55.3)% (87.0)% (62.1)% (74.9)% (91.0)% (62.8)% Capital Expenses We present below the Capital Expenses 2021 spending and forecast for the entire year of 2021 (in millions): Quarter ended March 31, 2021 Actual forecast data for the entire year of 2021 Maximum reach limit High reach limitROI – Marriott $ 28 transformational capital program $ 110 $ 140ROI – All other ROI projects 33 165 185 Total project ROI spent 61 275 325Renovations and replacements 32 100 150Total capital expenditures $ 93 $ 375 $ 475 The company is using the low occupancy environment to accelerate certain projects and minimize future disruptions and believes that the renovations will position these hotels to capture additional revenue during the economic recovery. The company recently completed the renovation of The Ritz-Carlton, Amelia Island as part of Marriott’s transformational capital program, bringing the total number of completed properties to eight, and is on track to complete 85% of that program by the end of 2021. The company expects to receive approximately $ 15 million in 2021 operating profit guarantees under Marriott’s transformational capital program, including $ 5 million received in the first quarter. Balance sheet The company maintains a robust balance sheet that presented the following balances as of March 31, 2021: Total assets of $ 12.7 billion. Total available liquidity of approximately $ 2.1 billion, including FF&E judicial reserves of $ 131 million. Debt balance of $ 5.5 billion, with an average maturity of 4.7 years, an average interest rate of 3.0% and no maturity until 2023. After real estate transactions completed after the end of the quarter, total liquidity The company’s adjusted cash flow was approximately US $ 1.5 billion, including FF&E escrow reserves. As the Company’s previous “in the market” offering program for common shares has expired, the Company intends to enter into a distribution agreement after filing its quarterly report with the SEC, whereby the Company may issue and sell, from time to time, common shares with an aggregate offer price of up to $ 600 million. The shares would be offered and sold through sales agents in transactions considered to be “on the market” offers at market prices prevailing at the time. The Company is not obliged to sell any shares and considers the “on the market” share offering program as a tool, among others, to raise capital when the Company believes that the conditions are advantageous and there is a mandatory use of resources, including future ones. potential acquisitions. On February 9, 2021, the Company changed its credit line for the second time during the pandemic to further extend the covenant’s waiver period until the first quarter of 2022. The financial covenant test will resume in the second quarter of 2022, based on annualized results for the quarter, but only a fixed interest coverage ratio of 1.0x will be required for the second quarter of 2022. For subsequent quarters, all financial covenants will be tested, with the leverage ratio tested in the modified levels agreed in the second addition. Quarterly dividends and share repurchases also remain suspended to help preserve liquidity and are restricted in terms of changes to credit lines. Outlook 2021 Given the global economic uncertainty that COVID-19 created for the travel, airline, hospitality and tourism and events industries, among others, the Company cannot provide guidance for its operations or fully estimate the effect of COVID-19 and the current US vaccination deployment in its operations. The company believes that the recovery in the accommodation sector will be driven by increased confidence that the risks associated with travel and hiring COVID-19 have been significantly reduced through the implementation of vaccines and the lifting of government restrictions. Although the company is not currently providing guidance on operations, it estimates that, for the entire year of 2021, interest and corporate expenses and other expenses will be in the following ranges (in millions): Whole year 2021 Lower bound of the range Upper limit of the range Interest expenses $ 170 $ 180 Corporate expenses and other 98 100 The Company does not intend to provide further guidance updates, unless deemed appropriate. About Host Hotels & Resorts Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest real estate investment fund in accommodation and one of the largest owners of luxury and upscale hotels. The company currently has 77 properties in the United States and five properties internationally, totaling approximately 47,200 rooms. The Company also holds non-controlling interests in six national and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection® , Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis® and Novotel®, as well as independent brands. For additional information, visit the Company’s website at www.hosthotels.com. Note: This press release contains forward-looking statements in accordance with federal securities regulations. These forward-looking statements include forecast results and are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “can”, “must,” ” Plan “,” predict “,” project “,” will “,” continue “and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks , uncertainties and other factors that could cause actual results to differ materially from those anticipated at the time the forward-looking statements are made These risks include, but are not limited to: the duration and scope of the COVID-19 pandemic and its short-term impact and long-term demand for travel, temporary and group business and consumer confidence levels; actions that governments, businesses and individuals take in response to the pandemic, including limiting or prohibiting travel or the size of meetings; the impact of the pandemic and the actions taken in response to the pandemic on global and regional economies, travel and economic activity, including the duration and magnitude of its impact on unemployment rates, business investment and consumer discretionary spending; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in the US markets where we own hotels and worsening economic conditions or low levels of economic growth in those markets; the effects of the measures that we and our hotel managers take to reduce operating costs in response to the COVID-19 pandemic; other changes (in addition to the COVID-19 pandemic) in national and local economic and commercial conditions and other factors, such as natural disasters and climate, that will affect occupancy rates in our hotels and the demand for hotel products and services; the impact of geopolitical developments outside the United States on the demand for accommodation; volatility in the global financial and credit markets; operational risks associated with the hotel business; risks and limitations in our operational flexibility associated with the level of our indebtedness and our ability to meet obligations in our debt contracts; risks associated with our relationships with property managers and joint venture partners; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; the effects of hotel renovations on our hotel occupancy and financial results; our ability to compete effectively in areas such as access, location, quality of accommodation and room rate structures; risks associated with our ability to complete acquisitions and develop new properties and the risks that acquisitions and new developments may not work according to our expectations; our ability to continue to comply with complex rules to continue to be a REIT for federal income tax purposes; risks associated with our ability to effect our dividend policy, including factors such as operating results and economic prospects that influence our board’s decision to pay more dividends at previously disclosed levels or to use available cash to make special dividends; and other risks and uncertainties associated with our business described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it cannot give any guarantee that the expectations will be met or that any deviation will not be material. All information in this release is dated May 4, 2021 and the Company assumes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. * This press release contains trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks have any responsibility or liability for any information contained in this press release. ___________ (1) NAREIT Funds From Operations (“FFO”) per diluted share, adjusted FFO per diluted share, EBITDAre, Adjusted EBITDA and all results from hotels owned (pro forma) are non-GAAP financial measures (generally accepted accounting principles in USA) within the meaning of the Securities and Exchange Commission (“SEC”) rules. See the Notes to the Financial Information on why the Company believes these supplementary measures are useful, reconciliations with the most directly comparable GAAP measure and limitations on the use of these supplementary measures. (2) The presentation includes comparisons with 2019 operating results so that investors can better understand the trajectory and timing of any recovery from the impacts of COVID-19 on hotel operations.N / M = Not significant (3) EBITDA pro forma all owned hotels and cash consumption are non-GAAP financial measures within the meaning of the second rules. See the Notes to the Financial Information on why the Company believes these supplementary measures are useful, reconciliations with the most directly comparable GAAP measure and limitations on the use of these supplementary measures. All Owned Hotel’s Pro Forma EBITDA includes an Employee Retention Credit in the first quarter of 2021 and in the fourth quarter of 2020 of $ 7 million and $ 15 million, respectively. It also includes license benefit costs of $ 13 million in the fourth quarter of 2020. (4) Interest payments for the fourth quarter of 2020 do not include $ 8 million debt extinguishment costs, which are considered a financing activity in Company Cash Flow Statement. (5) AC Hotel Scottsdale North is a new hotel under development that opened in January 2021. Therefore, there were no operations for the hotel before January 2021 and no adjustments were made to the hotel’s pro forma results for the periods prior to its opening. . *** Tables to follow *** Host Hotels & Resorts, Inc., hereinafter referred to as “we”, “Host Inc.” or the “Company”, is a self-managed and self-managed real estate investment fund that owns hotel properties. We conduct our operations as a REIT umbrella partnership through an operational partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the only general partner. In distinguishing between Host Inc. and Host LP, the main difference is approximately 1% of the partnership LP’s shareholdings in Host LP held by external partners as of March 31, 2021, which are non-controlling interests of Host LP in our consolidated balance sheets and is included in the net loss (income) attributable to non-controlling interests in our consolidated statements of operations. Readers are encouraged to find more details about our organizational structure in our annual report on Form 10-K. HOST HOTELS & RESORTS, INC. Condensed consolidated balance sheets (unaudited, in millions, except for shares and amounts per share) March 31, 2021 December 31, 2020 ASSETS Property, plant and equipment $ 9,506 $ 9,416 Right of active use 596 597 Due to managers 26 22 Advances and investments in affiliates 34 21 Furniture, utensils and equipment replacement fund 131 139 Other 420 360 Cash and cash equivalents 2,008 2,335 Total assets $ 12,721 $ 12,890 LIABILITIES, SHAREHOLDERS ‘EQUITY Debt (1) Senior notes $ 3,066 $ 3,065 Credit credit line, including term loans of $ 996 and $ 997, respectively 2,469 2,471 Other debts 5 5 Total debt 5,540 5,541 Liabilities for lease 609 610 Accounts payable and accumulated expenses 76 71 Due to managers 56 64 Other 166 170 Total liabilities 6,447 6,456 redeemable non-controlling interests – Host Hotels & Resorts, LP 124 108 Shareholders’ equity of Host Hotels & Resorts, Inc .: Common shares, face value $ 0.01 , 1,050 million authorized shares, 706.1 million shares if 705.4 million issued and outstanding shares, respectively 7 7 Additional paid-in capital 7,547 7,568 Other comprehensive accumulated losses (77) (74) Deficit (1,332) (1,180) Total shareholders’ equity of Host Hotels & Resorts, Inc. shareholders 6,145 6,321 No – Redeemable non-controlling interests – other consolidated partnerships 5 5 Shareholders’ equity 6,150 6,326 Total liabilities, non-controlling interests and shareholders’ equity $ 12,721 $ 12,890 ___________ (1) See our Supplemental Financial Information for the First Quarter of 2021 for more details on our debt balances and financial commitment indices under our credit line and senior note contracts. HOST HOTELS & RESORTS, INC. Condensed consolidated statements of operations (unaudited, in millions, except per share) Quarter ended March 31, 2021 2020 Revenues Rooms $ 257 $ 626 Food and beverages 77 330 Others 65 96 Total revenues 399 1,052 Expenses Rooms 65 187 Food and beverages 62 245 Other departmental and support expenses 160 319 Management fees 11 30 Other property-level expenses 78 93 Depreciation and amortization 165 164 Corporate and other expenses (1) 24 25 Total operating costs and expenses 565 1,063 Operating losses (166) (11) Interest income 1 6 Interest expense (42) (37) Other losses (1) (2) Equity income 9 9 Loss before income tax (199) (40) Income tax benefit (2 ) 46 37 Net loss (153) (3) Less: Net loss attributable to non-controlling interests 1 – Net loss attributable to Host Inc. $ (152) $ (3) Basic and diluted loss per common share $ (. 22) $ – ____ _______ (1) Corporate expenses and other expenses include the following items: Quarter ended March 31, 2021 2020 General and administrative costs $ 20 $ 22 Share-based compensation and non-cash expenses 4 3Total $ 24 $ 25 (2) We recorded an income tax benefit in the first quarter of 2021 and in 2020 to reflect the net operating losses incurred which, as a result of legislation enacted by the CARES Act, can be retroactive for up to five years in order to obtain a refund of the income tax. US federal corporate income previously paid. Any net operating loss not carried under these rules can be reported indefinitely, subject to an annual limit of 80% of the annual taxable profit for its use. We expect to generate additional net operating losses in 2021 and will assess whether we will record an income tax benefit for all or part of such net operating loss during and throughout 2021. HOST HOTELS & RESORTS, INC. Gains (losses) per common share (unaudited, in millions, except per share) Quarter ended March 31, 2021 2020 Net loss $ (153) $ (3) Less: Net loss attributable to non-controlling interests 1 – Loss net attributable to Host Inc. $ (152) $ (3) Basic weighted average number of outstanding shares 705.6 708.1 Diluted weighted average number of outstanding shares (1) 705.6 708.1 Basic and diluted loss per common share $ ( 22) $ – ___________ (1) Dilutive securities may include shares granted under comprehensive share plans, preferred operating partnership units (“OP Units”) held by minority shareholders and other non-controlling interests that have the option of converting their interests into limited partnerships in common OP Units. No effect is shown for any securities that were anti-diluting for the period. HOST HOTELS & RESORTS, INC. Hotel operating data for consolidated hotels (1) (2) All owned hotels (pro forma) by location in constant US $ compared to 2020 As of March 31, 2021 Quarter ended March 31, 2021 Quarter ended March 31 , 2020 LocationNo. ofProperties No. ofRooms AverageRoom Rate AverageOccupancyPercentage RevPAR Total RevPAR AverageRoom Rate AverageOccupancyPercentage RevPAR Total RevPAR PercentChange inRevPAR PercentChange inTotal RevPAR Miami 3 1,276 $ 556.36 55.6% $ 309.29 $ 470.45 $ 443.30 70.9% $ 314 , 30 Florida Coast 5.67.59% $ 314.11 49.30% 70.9% $ 314.11 Gulf Coast 5.30% 52.30% $ 314.11. 489.52 430.81 70.8 305.01 649.38 (9.6) (24.6) Phoenix 4 1,819 355.31 49.9 177.15 335.19 369.52 67.1 248.11 552 , 93 (28.6) (39.4) Jacksonville 1 446 484.86 35.5 171.97 345.82 363.41 57.0 207.28 466.16 335.19 369.52 67.1 248, 11 552.93 (28.6) (39.4) Jacksonville 1 446 484.86 35.5 171.97 345.82 363.41 57.0 207.28 466.16 335.19 369.52; 404.89 40.0 162.15 243.26 469.81 74.5 350.05 513.46 (53.7) (52.6) Washington, DC (CBD) 5 3,238 152.00 49.3 74, 98 78,49 230,32 54,0 124,28 183,71 (39,7) (57,3) Houston 4 1,716 125,89 50,9 64,05 86,95 40,02,23 61,37, 63 (57,3) (46,5) Atlanta 4 1.682 155,54 37,7 58,57 75,06 192,55 63,1 121,49 196,11 (51,8) (61,7) Filadélfia 2 810 135,04 36,9 49,89 70,10 173,70 62,8 109,04 180,62 (54,2) (61,2) Virgínia do Norte 3 1,252 150,57 29 0,5 44,45 63,28 206,66 52,7 108,90 180,68 (59,2) (65,0) San Antonio / Austin 3 1.960 128,07 31,5 40,35 57,23 196,60 47,7 93 ,85 157,07 (57,0) (63,6) Los Angeles / Orange County 5 2,119 158,07 24,3 38,41 50,27 213,01 67,43,85 157,07 (57,0) (57,0) (63,6) Los Angeles / Condado de Orange 5 2,119 158,07 24,3 38,41 50,27 213,01 67,43,52 73,2) (76,7) San Diego 3 3.288 156,29 17,16,69 48,42 244,32 61,2 149,44 291,18 (82,1) (83,4) Nova York 3 4.261 142,98 15,9 22,78 29,16 220,61 56,1 123,75 197,15 (81,6) (85,2) Orlando 1 2,004 151,40 13,21 19,95 52,40 215,15 123,02 288,47 (83 ,8) (81,8) Denver 3 1.340 112,49 17,2 19,34 23,70 161,52 50,1 80,92 125,09 (76,1) (81,1) Chicago 4 1.816 115,21 16,2 18,62 22,77 142,48 47,5 67,69 95,61 (72,5) (76,2) San Francisco / San Jose 7 4,528 136,44 13,3 18,10 23,78 295,37 59,3 175,08 254,37 (89,7) (90,7) Nova Orleans 1 1.333 107,71 13,3 14,30 27,41 202,36 65,3 132,09 197,80 (89,2) (86,1) Seattle 2 1.315 149,63 7,2 10,84 14,53 193,42 54,0 104,51 2.715 117,71 8,0 9,40 12,14 177,13 53,0 93,85 141,90 (90,0) (91,4) Outros 6 2.509 135,81 27,2 36,96 47,9 6 166,44 57,3 95,36 134,38 (61,2) (64,3) Doméstico 76 45.256 233,01 27,1 63,08 97,61 253,75 59,1 150,09 252,30 (58,0) (61,3) Internacional 5 1,499 89,36 13,0 11,62 15,46 133,47 53,3 71,18 104,05 (83,7) (85,1) Todos os locais – constantes nos EUA $ 81 46.755 230,76 26,6 61,43 94,98 250,26 59,0 147,56 247,53 (58,4) (61,6) Todos os hotéis próprios (pro forma) em US $ Nominal em comparação com 2020 Em 31 de março de 2021 Trimestre findo em 31 de março de 2021 Trimestre findo em 31 de mar ço de 2020 Não . ofProperties No. ofRooms AverageRoom Rate AverageOccupancyPercentage RevPAR Total RevPAR AverageRoom Rate AverageOccupancyPercentage RevPAR Total RevPAR PercentChange inRevPAR PercentChange inTotal RevPAR International 5 1.499 $ 89,36 13,0% $ 11,62 $ 15,46 $ 138,21 53,3% $ 73,70% $ 106,43 (84,23%). 253,75 59,1 150,09 252,30 (58,0) (61,3) Todos os locais 81 46,755 230,76 26,6 61,43 94,98 250,40 59,0 147,64 247,61 (58,4) (61,6) Todos os hotéis de propriedade (pro forma) por local em US $ constantes em comparação com 2019 em 31 de março de 2021 Trimestre findo em 31 de março de 2021 Trimestre findo em 31 de março de 2019 LocalizaçãoNo. ofProperties No. ofRooms AverageRoom Rate AverageOccupancyPercentage RevPAR Total RevPAR AverageRoom Rate AverageOccupancyPercentage RevPAR Total RevPAR PercentChange inRevPAR PercentChange inTotal RevPAR Miami 3 1.276 $ 556,36 55,6% $ 309,29 $ 470,45 $ 408,86 85,9% $ 522,85% 85,9% $ 522,85 Costa da Flórida (5,91%) $ 522,86 85,9% $ 522,86 Costa da Flórida. 489,52 439,30 83,1 364,98 729,85 (24,5) (32,9) Phoenix 4 1.819 355,31 49,9 177,15 335,19 373,48 82,7 308,80 644,54 (42,6) (48,0) Jacksonville 1 446 484,86 35,5 171,97 345,82 367,78 78,6 289,04 690,11 Oahu) 404,89 40,0 162,15 243,26 437,66 89,0 389,36 584,39 (58,4) (58,4) Washington, DC (CBD) 5 3,238 152,00 49,3 74,98 78,49 247,89 73,3 181,79 257,64 (58,8) (69,5) Houston 4 1,716 125,89 50,9 64,05 86,98 78,49 247,89 73,3 181,79 257,64 (58,8) (69,5) Houston 4 1,716 125,89 50,9 64,05 86,98 78,49 247,89 73,3 181,79 257,64 (58,8) (69,5) Houston 4 1,716 125,89 50,9 64,05 86,98 78,49 247,89 73,3 181,79 257,64 (58,8) (69,5) Houston 4 1,716 125,89 50,9 64,05 86,98 78,49 247,89 73,3 181,79 257,64 (58,8) (69,5) Houston 4 1,716 125,89 50,9 64,05 86,04 53,7 138,68,68 (56,8) Atlanta 4 1.682 155,54 37,7 58,57 75,06 227,57 76,7 174,60 272,88 (66,5) (72,5) Filadélfia 2 810 135,04 36,9 49,89 70,10 190,16 78,1 148,48 242,24 (66,4) (71,1) Virgínia do Norte 3 1,252 150,57 29.5 44.45 63.28 210.16 65.7 138.09 239.65 (67.8) (73.6)San Antonio/Austin 3 1,960 128.07 31.5 40.35 57.23 208.03 79.2 164.69 260.10 (75.5) (78.0)Los Angeles/Orange County 5 2,119 158.07 24.3 38.41 50.27 219.94 84.5 185.95 279.42 (79.3) (82.0)San Diego 3 3,288 156.29 17.1 26.69 48.42 252.91 76.9 194.59 349.55 (86.3) (86.1)New York 3 4,261 142.98 15.9 22.78 29.16 236.38 72.0 170.27 267.69 (86.6) (89.1)Orlando 1 2,004 151.40 13.2 19.95 52.40 208.20 79.0 164.41 385.22 (87.9) (86.4)Denver 3 1,340 112.49 17.2 19.34 23.70 161.82 64.7 104.75 158.27 (81.5) (85.0)Chicago 4 1,816 115.21 16.2 18.62 22.77 148.27 60.4 89.50 128.94 (79.2) (82.3)San Francisco/San Jose 7 4,528 136.44 13.3 18.10 23.78 305.80 77.3 236.51 330.84 (92.3) (92.8)New Orleans 1 1,333 107.71 13.3 14.30 27.41 209.79 81.6 171.18 249.87 (91.6) (89.0)Seattle 2 1,315 149.63 7.2 10.84 14.53 194.12 77.4 150.15 203.91 (92.8) (92.9)Boston 3 2,715 117.71 8.0 9.40 12.14 190.33 69.4 132.03 196.44 (92.9) (93.8)Other 6 2,509 135.81 27.2 36.9 6 47.96 168.26 73.1 122.94 175.07 (69.9) (72.6)Domestic 76 45,256 233.01 27.1 63.08 97.61 257.13 76.2 195.88 318.78 (67.8) (69.4) International 5 1,499 89.36 13.0 11.62 15.46 134.63 67.6 91.07 132.89 (87.2) (88.4)All Locations – Constant US$ 81 46,755 230.76 26.6 61.43 94.98 253.61 75.9 192.51 312.80 (68.1) (69.6) All Owned Hotels (pro forma) in Nominal US$ Compared to 2019 As of March 31, 2021 Quarter ended March 31, 2021 Quarter ended March 31, 2019 No. ofProperties No. ofRooms AverageRoom Rate AverageOccupancyPercentage RevPAR Total RevPAR AverageRoom Rate AverageOccupancyPercentage RevPAR Total RevPAR PercentChange inRevPAR PercentChange inTotal RevPAR International 5 1,499 $89.36 13.0% $11.62 $15.46 $143.88 67.6% $97.32 $140.81 (88.1)% (89.0)%Domestic 76 45,256 233.01 27.1 63.08 97.61 257.13 76.2 195.88 318.78 (67.8) (69.4)All Locations 81 46,755 230.76 26.6 61.43 94.98 253.88 75.9 192.71 313.05 (68.1) (69.7) ___________ (1)To facilitate a quarter-to-quarter comparison of our oper ations, we typically present cert ain operating statistics and operating results for the periods included in this presentation on a comparable hotel basis. However, due to the COVID-19 pandemic and its effects on operations there is little comparability between periods. For this reason, we temporarily are revising our presentation to instead present hotel operating results for all consolidated hotels and, to facilitate comparisons between periods, we are presenting results on a pro forma basis including the following adjustments: (1) operating results are presented for all consolidated properties owned as of March 31, 2021 but do not include the results of operations for properties sold through the reporting date; and (2) operating results for acquisitions as of March 31, 2021 are reflected for full calendar years, to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. See the Notes to Financial Information – All Owned Hotel Pro Forma Operating Statistics and Results for further information on these pro forma statistics and – Constant US$ and Nominal US$ for a discussion on constant US$ presentation. Nominal US$ results include the effect of currency fluctuations, consistent with our financial statement presentation. The AC Hotel Scottsdale North is a new development hotel that opened in January 2021. Therefore, there were no operations for the hotel prior to January 2021 and no adjustments made for pro forma results of the hotel for periods prior to its opening. CBD of a location refers to the central business district.(2)Hotel RevPAR is calculated as room revenues divided by the available room nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and beverage and other revenues by the available room nights. HOST HOTELS & RESORTS, INC. Schedule of All Owned Hotel Pro Forma Results (1)(unaudited, in millions, except hotel statistics) Quarter ended March 31, 2021 2020 2019 Number of hotels 81 80 80 Number of rooms 46,755 46,590 46,590 Change in hotel Total RevPAR – Constant US$ (61.6)% — — Nominal US$ (61.6)% — — Change in hotel RevPAR – Constant US$ (58.4)% — — Nominal US$ (58.4)% — — Operating profit (loss) margin (2) (41.6)% (1.0)% 15.5%All Owned Hotel Pro Forma EBITDA margin (2) 5.2% 17.1% 30.0%Food and beverage profit margin (2) 19.5% 25.8% 34.2%All Owned Hotel Pro Forma food and beverage profit margin (2) 19.5% 26.2% 34.3% Net income (loss) $(153) $(3) $189 Depreciation and amortization 165 164 170 Interest expense 42 37 43 Provision (benefit) for income taxes (46) (37) 2 Gain on sale of property and corporate level income/expense 15 17 11 Severance expense (reversal) at hotel properties (2) — — Pro forma adjustments (3) — 2 (21)All Owned Hotel Pro Forma EBITDA(4) $21 $180 $394 Quarter ended March 31, 2021 Quarte r ended March 31, 2020 Adjustments Adjustments GAAP Results Severance at hotel properties Pro forma adjustments(3) Depreciation and corporate level items All Owned Hotel Pro Forma Results (3) GAAP Results Pro forma adjustments (3) Depreciation and corporate level items All Owned Hotel Pro Forma Results (3)Revenues Room $257 $— $2 $— $259 $626 $— $— $626Food and beverage 77 — — — 77 330 2 — 332Other 65 — — — 65 96 (1) — 95Total revenues 399 — 2 — 401 1,052 1 — 1,053Expenses Room 65 1 — — 66 187 — — 187Food and beverage 62 — — — 62 245 — — 245Other 249 1 2 — 252 442 (1) — 441Depreciation and amortization 165 — — (165) — 164 — (164) —Corporate and other expenses 24 — — (24) — 25 — (25) —Total expenses 565 2 2 (189) 380 1,063 (1) (189) 873Operating Profit – All Owned Hotel Pro Forma EBITDA(4) $(166) $(2) $— $189 $21 $(11) $2 $189 $180 Quarter ended March 31, 2021 Quarter ended March 31, 2019 Adjustments Adjustments GAAP Results Severance at hotel properties Pro forma adjustments (3) Deprec iation and corporate level items All Owned Hotel Pro Forma Results (3) GAAP Results Pro forma adjustments (3) Depreciation and corporate level items All Owned Hotel Pro Forma Results (3)Revenues Room $257 $— $2 $— $259 $857 $(49) $— $808Food and beverage 77 — — — 77 433 (19) — 414Other 65 — — — 65 100 (7) — 93Total revenues 399 — 2 — 401 1,390 (75) — 1,315Expenses Room 65 1 — — 66 217 (14) — 203Food and beverage 62 — — — 62 285 (13) — 272Other 249 1 2 — 252 473 (27) — 446Depreciation and amortization 165 — — (165) — 170 — (170) —Corporate and other expenses 24 — — (24) — 29 — (29) —Total expenses 565 2 2 (189) 380 1,174 (54) (199) 921Operating Profit – All Owned Hotel Pro Forma EBITDA(4) $(166) $(2) $— $189 $21 $216 $(21) $199 $394 ___________ (1)See the Notes to Financial Information for a discussion of non-GAAP measures and the calculation of all owned hotel pro forma results, including the limitations on their use.(2)Profit margins are calculated by divid ing the applicable operatin g profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Hotel margins are calculated using amounts presented in the above tables.(3)Pro forma adjustments represent the following items: (i) the elimination of results of operations of our sold hotels, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations and (ii) the addition of results for periods prior to our ownership for hotels acquired as of March 31, 2021. All Owned Hotel Pro Forma results also includes the results of our leased office buildings and other non-hotel revenue and expense items.(4)All Owned Hotel Pro Forma EBITDA excludes the Four Seasons Resort Orlando at Walt Disney World® Resort, as it was acquired subsequent to quarter end. Additionally, the AC Hotel Scottsdale North is a new development hotel that opened in January 2021. Therefore, there were no operations for the hotel prior to January 2021 and no adjustments made for pro forma results of the hotel for periods prior to its opening. HOST HOTELS & RESORTS, INC.Reconciliation of Net Income (Loss) toEBITDA, EBITDAre and Adjusted EBITDAre (1)(unaudited, in millions) Quarter ended March 31, 2021 2020 Net loss $(153) $(3)Interest expense 42 37 Depreciation and amortization 165 164 Income taxes (46) (37)EBITDA 8 161 Loss on dispositions — 1 Equity investment adjustments: Equity in earnings of affiliates (9) (4)Pro rata EBITDAre of equity investments(2) 6 6 EBITDAre 5 164 Adjustments to EBITDAre: Severance expense (reversal) at hotel properties (2) — Adjusted EBITDAre $3 $164 ___________ (1)See the Notes to Financial Information for discussion of non-GAAP measures.(2)Unrealized gains of our unconsolidated investments are not recognized in our EBITDAre, Adjusted EBITDAre, NAREIT FFO or Adjusted FFO until they have been realized by the unconsolidated partnership. HOST HOTELS & RESORTS, INC.Reconciliation of Diluted Earnings (Loss) per Common Share toNAREIT and Adjusted Funds From Operations per Diluted Share (1)(unaudited, in millions, except per share amounts) Quarter endedMarch 31, 2021 2020 Net loss $(153) $(3)Less: Net loss attributable to non-controlling interests 1 — Net loss attributable to Host Inc. (152) (3)Adjustments: Loss on dispositions — 1 Depreciation and amortization 165 164 Equity investment adjustments: Equity in earnings of affiliates (9) (4)Pro rata FFO of equity investments(2) 4 4 Consolidated partnership adjustments: FFO adjustments for non-controlling interests of Host L.P. (2) (2)NAREIT FFO 6 160 Adjustments to NAREIT FFO: Severance expense (reversal) at hotel properties (2) — Adjusted FFO $4 $160 For calculation on a per share basis:(3) Diluted weighted average shares outstanding – EPS 705.6 708.1 Assuming issuance of common shares granted under the comprehensive stock plans 0.9 0.4 Diluted weighted average shares outst anding – NAREIT FFO and Adjusted FFO 706.5 708.5 Diluted loss per common share $(.22) $— NAREIT FFO per diluted share $.01 $.23 Adjusted FFO per diluted share $.01 $.23 ___________ (1-2)Refer to corresponding footnote on the Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre.(3)Diluted loss per common share, NAREIT FFO per diluted share and Adjusted FFO per diluted share are adjusted for the effects of dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, preferred OP units held by non-controlling partners and other non-controlling interests that have the option to convert their limited partnership interests to common OP units. No effect is shown for securities if they are anti-dilutive. HOST HOTELS & RESORTS, INC. Notes to financial Information All Owned Hotel Pro Forma Operating Statistics and Results To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this presentation on a comparable hotel basis in order to enable our investors to better evaluate our operating performance (discussed in “Hotel Property Level Operating Results” below). However, due to the COVID-19 pandemic and its effects on operations, there is little comparability between periods. For this reason, we temporarily are suspending our comparable hotel presentation and instead present hotel operating results for all consolidated hotels and, to facilitate comparisons between periods, we are presenting results on a pro forma basis, including the following adjustments: (1) operating results are presented for all consolidated hotels owned as of March 31, 2021, but do not include the results of operations for properties sold through the reporting date; and (2) operating results for acquisitions as of March 31, 2021 are reflected for full calendar years, to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. Constant US$ and Nominal US$ Operating results denominated in foreign currencies are translated using the prevailing exchange rates on the date of the transaction, or monthly based on the weighted average exchange rate for the period. For comparative purposes, we also present the RevPAR results for the prior year assuming the results of our foreign operations were translated using the same exchange rates that were effective for the comparable periods in the current year, thereby eliminating the effect of currency fluctuation for the year-over-year comparisons. We believe this presentation is useful to investors as it provides clarity with respect to the change in RevPAR in the local currency of the hotel consistent with the manner in which we would evaluate our domestic portfolio. However, the estimated effect of changes in foreign currency has been reflected in the results of net income (loss), EBITDA, Adjusted EBITDAre, diluted earnings (loss) per common share and Adjusted FFO per diluted share. Nominal US$ results include the effect of currency fluctuations, consistent with our financial statement presentation. Non-GAAP Financial Measures Included in this press release are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. They are as follows: (i) FFO and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA, (iii) EBITDAre and Adjusted EBITDAre, (iv) All Owned Hotel Pro Forma Operating Statistics and Results and (v) Cash burn. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance. NAREIT FFO and NAREIT FFO per Diluted Share We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of our performance in addition to our earnings per share (calculated in accordance with GAAP). We calculate NAREIT FFO per diluted share as our NAREIT FFO (defined as set forth below) for a given operating period, as adjusted for the effect of dilutive securities, divided by the number of fully diluted shares outstanding during such period, in accordance with NAREIT guidelines. Effective January 1, 2019, we adopted NAREIT’s definition of FFO included in NAREIT’s Funds From Operations White Paper – 2018 Restatement. NAREIT defines FFO as net income (calculated in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment expense of certain real estate assets and investments and adjustments for consolidated partially-owned entities and unconsolidated affiliates. Adjustments for consolidated partially-owned entities and unconsolidated affiliates are calculated to reflect our pro rata share of the FFO of those entities on the same basis. We believe that NAREIT FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of NAREIT FFO per diluted share, when combined with the primary GAAP presentation of earnings per share, provides beneficial information to investors. By excluding the effect of real estate depreciation, amortization, impairment expense and gains and losses from sales of depreciable real estate, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance, we believe that such measures can facilitate comparisons of operating performance between periods and with other REITs, even though NAREIT FFO per diluted share does not represent an amount that accrues directly to holders of our common stock. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. As noted by NAREIT in its Funds From Operations White Paper – 2018 Restatement, the primary purpose for including FFO as a supplemental measure of operating performance of a REIT is to address the artificial nature of historical cost depreciation and amortization of real estate and real estate-related assets mandated by GAAP. For these reasons, NAREIT adopted the FFO metric in order to promote a uniform industry-wide measure of REIT operating performance. Adjusted FFO per Diluted Share We also present Adjusted FFO per diluted share when evaluating our performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. Management historically has made the adjustments detailed below in evaluating our performance, in our annual budget process and for our compensation programs. We believe that the presentation of Adjusted FFO per diluted share, when combined with both the primary GAAP presentation of diluted earnings per share and FFO per diluted share as defined by NAREIT, provides useful supplemental information that is beneficial to an investor’s understanding of our operating performance. We adjust NAREIT FFO per diluted share for the following items, which may occur in any period, and refer to this measure as Adjusted FFO per diluted share: Gains and Losses on the Extinguishment of Debt – We exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of the write-off of deferred financing costs from the original issuance of the debt being redeemed or retired and incremental interest expense incurred during the refinancing period. We also exclude the gains on debt repurchases and the original issuance costs associated with the retirement of preferred stock. We believe that these items are not reflective of our ongoing finance costs.Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company.Litigation Gains and Losses – We exclude the effect of gains or losses associated with litigation recorded under GAAP that we consider outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance.Severance Expense –In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business. In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of the Company’s current operating performance. For example, in 2017, as a result of the reduction of the U.S. federal corporate income tax rate from 35% to 21% by the Tax Cuts and Jobs Act, we remeasured our domestic deferred tax assets as of December 31, 2017 and recorded a one-time adjustment to reduce our deferred tax assets and to increase the provision for income taxes by approximately $11 million. We do not consider this adjustment to be reflective of our on-going operating performance and, therefore, we excluded this item from Adjusted FFO. EBITDA Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners that are not REITs and other capital-intensive companies. Management uses EBITDA to evaluate property-level results and as one measure in determining the value of acquisitions and dispositions and, like FFO and Adjusted FFO per diluted share, it is widely used by management in the annual budget process and for our compensation programs. EBITDAre and Adjusted EBITDAre We present EBITDAre in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,” to provide an additional performance measure to facilitate the evaluation and comparison of the Company’s results with other REITs. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) excluding interest expense, income tax, depreciation and amortization, gains or losses on disposition of depreciated property (including gains or losses on change of control), impairment expense of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s pro rata share of EBITDAre of unconsolidated affiliates. We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s understanding of our operating performance. Adjusted EBITDAre also is similar to the measure used to calculate certain credit ratios for our credit facility and senior notes. We adjust EBITDAre for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDAre: Property Insurance Gains – We exclude the effect of property insurance gains reflected in our consolidated statements of operations because we believe that including them in Adjusted EBITDAre is not consistent with reflecting the ongoing performance of our assets. In addition, property insurance gains could be less important to investors given that the depreciated asset book value written off in connection with the calculation of the property insurance gain often does not reflect the market value of real estate assets.Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company.Litigation Gains and Losses – We exclude the effect of gains or losses associated with litigation recorded under GAAP that we consider outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance.Severance Expense – In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business. In unusual circumstances, we also may adjust EBITDAre for gains or losses that management believes are not representative of the Company’s current operating performance. The last adjustment of this nature was a 2013 exclusion of a gain from an eminent domain claim. Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre and Adjusted EBITDAre We calculate EBITDAre and NAREIT FFO per diluted share in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies that do not use the NAREIT definition of EBITDAre and FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. In addition, although EBITDAre and FFO per diluted share are useful measures when comparing our results to other REITs, they may not be helpful to investors when comparing us to non-REITs. We also calculate Adjusted FFO per diluted share and Adjusted EBITDAre, which are not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs or by other companies. This information should not be considered as an alternative to net income, operating profit, cash from operations or any other operating performance measure calculated in accordance with GAAP. Cash expenditures for various long-term assets (such as renewal and replacement capital expenditures), interest expense (for EBITDA, EBITDAre and Adjusted EBITDAre purposes only), severance expense related to significant property-level reconfiguration and other items have been, and will be, made and are not reflected in the EBITDA, EBITDAre, Adjusted EBITDAre, NAREIT FFO per diluted share and Adjusted FFO per diluted share presentations. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations and consolidated statements of cash flows (“Statements of Cash Flows”) in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted share, EBITDA, EBITDAre and Adjusted EBITDAre should not be considered as a measure of our liquidity or indicative of funds available to fund our cash needs, including our ability to make cash distributions. In addition, NAREIT FFO per diluted share and Adjusted FFO per diluted share do not measure, and should not be used as a measure of, amounts that accrue directly to stockholders’ benefit. Similarly, EBITDAre, Adjusted EBITDAre, NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of our equity investments and NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of non-controlling partners in consolidated partnerships. Our equity investments consist of interests ranging from 11% to 67% in seven domestic and international partnerships that own a total of 10 properties and a vacation ownership development. Due to the voting rights of the outside owners, we do not control and, therefore, do not consolidate these entities. The non-controlling partners in consolidated partnerships primarily consist of the approximate 1% interest in Host LP held by outside partners, and a 15% interest held by outside partners in a partnership owning one hotel for which we do control the entity and, therefore, consolidate its operations. These pro rata results for NAREIT FFO and Adjusted FFO per diluted share, EBITDAre and Adjusted EBITDAre were calculated as set forth in the definitions above. Readers should be cautioned that the pro rata results presented in these measures for consolidated partnerships (for NAREIT FFO and Adjusted FFO per diluted share) and equity investments may not accurately depict the legal and economic implications of our investments in these entities. Hotel Property Level Operating Results We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA (and the related margins), on a hotel-level pro forma basis as supplemental information for our investors. Our hotel results reflect the operating results of our hotels as discussed in “All Owned Hotel Pro Forma Operating Statistics and Results” above. We present all owned hotel pro forma EBITDA to help us and our investors evaluate the ongoing operating performance of our hotels after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization expense). Corporate-level costs and expenses also are removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our hotels. All owned hotel pro forma results are presented both by location and for the Company’s properties in the aggregate. While severance expense is not uncommon at the individual property level in the normal course of business, we eliminate from our hotel level operating results severance costs related to broad-based and significant property-level reconfiguration that is not considered to be within the normal course of business, as we believe this elimination provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. We also eliminate depreciation and amortization expense because, even though depreciation and amortization expense are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assume that the value of real estate assets diminishes predictably over time. As noted earlier, because real estate values historically have risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient. Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the hotel operating results we present do not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance. While management believes that presentation of all owned hotel results is a supplemental measure that provides useful information in evaluating our ongoing performance, this measure is not used to allocate resources or to assess the operating performance of each of our hotels, as these decisions are based on data for individual hotels and are not based on all owned hotel results in the aggregate. For these reasons, we believe all owned hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management. The following presents the reconciliation of our Net Loss to All Owned Hotels Pro Forma EBITDA (in millions) for the quarter ended December 31, 2020 and is included as All Owned Hotels Pro Forma EBITDA is a component of fourth quarter cash burn. For additional reconciliations of All Owned Hotels Pro Forma EBITDA for the quarter ended March 31, 2021 and comparable quarters in prior years, see page 13: Quarter endedDecember 31, 2020 Net loss $(66) Depreciation and amortization 167 Interest expense 51 Provision for income taxes (64) Gain on sale of property and corporate level income/expense (171) Severance at hotel properties 21 All Owned Hotels Pro Forma EBITDA $(62) COVID-19 Non-GAAP Reporting Measures Cash Burn. Management utilizes the cash burn metric to evaluate the amounts necessary to fund operating losses during periods where hotels have suspended operations or are operating at very low levels of occupancy due to the COVID-19 pandemic. Therefore, management believes this metric is helpful to investors to evaluate the Company’s ongoing ability to continue to fund operating losses during the current periods of operating losses. The Company defines cash burn as net cash provided by (used in) operating activities adjusted for (i) changes in short term assets and liabilities and (ii) contributions to equity investments, plus capital expenditures, as further described below. Cash burn is not intended to be, and should not be used as a substitute for GAAP net cash provided by (used in) operating activities as it does not reflect the issuance or repurchase of equity, the payment of dividends, the issuance or repayment of debt, or other investing activities such as the purchase or sale of hotels. Adjustments include: Changes in short term assets and liabilities – The Company eliminates changes in short-term assets and liabilities, including due from managers, other assets and other liabilities, that primarily represent timing of cash inflows and outflows. As a result, cash burn includes income and expenses in better alignment with how these items are reflected on the statements of operations. These items generally represent receipts and payments that will be settled within the year and do not reflect the cash savings or liquidity needs of the Company on an on-going basis.Contributions to equity investments – The Company includes contributions to equity investments that have been necessary due to the depressed operations for these investments during the COVID-19 pandemic. These contributions are included as investing activities on the Statements of Cash Flows.Capital Expenditures – Capital expenditures are included in the cash burn amount as they represent a significant on-going cash outflow of the Company. While management continually evaluates its capital expenditures program to appropriately balance improving and renewing its hotel portfolio with its overall cash needs; management continues to anticipate capital expenditures to be a significant cash outflow. The following presents the reconciliation of our net cash used in operating activities from our Statements of Cash Flows to cash burn (in millions): Quarter ended March 31, 2021 Quarter ended December 31, 2020 GAAP net cash used in operating activities $(49) $(143) Contributions to equity investments (2) (1) Timing adjustments Change in due from/to managers 1 21 Change in other assets (3) (21) Change in other liabilities 8 (5) Cash burn excluding capital expenditures (45) (149) Capital expenditures (93) (115) Cash burn $(138) $(264) SOURAV GHOSHTEJAL ENGMANChief Financial OfficerInvestor Relations(240) 744-5267(240) 744-5116 ir@hosthotels.com A PDF accompanying this announcement is available at: http://ml.globenewswire.com/Resource/Download/fafed517-c9d4-45a6-a599-1a2d6d687fca

Paula Fonseca